Shimizu (1803) Corporate presentation summary

Financial performance highlights

• FY2025 net sales rose by 113.4 billion yen, driven by domestic construction and M&A-acquired overseas subsidiaries.

• Operating income increased by 47.6 billion yen, reflecting improved profitability in domestic and overseas projects.

• Net income surged by 60.6 billion yen, including 87.9 billion yen in gains from security holdings sales.

• FY2026 forecasts project net sales of 2,310.0 billion yen and net income of 165.5 billion yen, aided by negative goodwill and ongoing project profitability.

• Annual dividend is set to rise to 77 yen per share, up 5 yen from the previous year.

Business environment and strategic initiatives

• Domestic construction demand remains robust, fueled by metropolitan redevelopment, factory construction, and data center investments.

• Labor shortages and increased project scale are leading to busy subcontractors and selective order acceptance.

• Overseas, strong demand persists in Southeast Asia, India, and North America, especially for data centers and infrastructure.

• Strategic M&A includes the acquisition of Aomi Construction and American Engineering Corporation to enhance civil engineering and international capabilities.

• Investment focus includes talent development, R&D, real estate, and green energy, with a three-year plan totaling 360 billion yen.

Innovation and productivity improvements

• Accelerating R&D in robotics and AI, including humanoid robots and automation for construction sites.

• Implementation of ICT and AI-driven systems like the Smart Tunnel for productivity and safety gains.

• New construction methods, such as Re-GENUS BASE, reduce skyscraper redevelopment periods by over a year.

• Initiatives to improve skilled worker benefits, promote two-day weekends, and support foreign technical interns.